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The Sponsors Alliance position on the future of Export promotion, Executive summary

UK Trade & Investment's trade promotion policies and infrastructure are not relevant and viable in the present economic climate. UKTI's structure is burdened by internal staff, overheads and administrative costs, which make up around 75% of its operating budget. Its trade development policy is focused on capacity building among UK exporters, marketing the UK’s business strengths, and focusing on certain "key" business sectors and target markets.

In the current economic crisis the UK needs an urgent and significant injection of government investment in order to boost export activity and encourage UK companies to engage in and increase their international sales efforts. These resources should be targeted towards business schemes which directly benefit exporters across all industry sectors and directly encourage them to enter overseas markets. They should be focused on those schemes which bring the largest financial return on investment.

UK Trade & Investment must reduce its cost burden, by:-

reducing staff and administrative budgets, including use of consultants.
eliminating inefficient regional networks and duplication of resources and activities.
dramatically reducing its marketing budget and activities.
reducing expenditure on activities to promote foreign direct investment into the UK.

The resulting cost savings should be channelled into export business schemes which directly benefit UK exporters.

UKTI can reduce the cost of delivering business schemes by greater use of existing industry intermediaries, such as trade associations and chambers of commerce, many of which operate export-related services and benefits and already undertake overseas exhibition and mission activities in conjunction with UKTI. Cooperation with not-for-profit industry organisations allows both parties to leverage existing services and activities and create greater efficiencies.

Opportunities exist for industry associations to play a greater role in delivering overseas market information services, and in providing advice, mentoring and support on behalf of UK Trade & Investment. Industry associations are keen to play a greater role in delivering export promotion services in partnership with UK Trade & Investment.

If you support the Sponsors Alliance position and wish to comment, please email the the Sponsors Alliance using the form below:-

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About Sponsors Alliance

As industry representative bodies, we believe we are best placed to promote our industry sectors and to manage business schemes.

We firmly believe that trade development must be managed nationally and with sector expertise.

Currently there are around 40 members of the Sponsors Alliance. All members are Accredited Trade Organisations (ATO's), who are not-for-profit, national, independent, cross-sectorial and membership based.

Sponsors Alliance members organise and account for around 60% of the TAP programme events and budgets.

The Trade associations and Chambers of Commerce within the Sponsors Alliance represent thousands of companies and hundreds of thousands of employees.

Exhibition Support

We once again have to battle to retain a nationally run and properly funded trade fair scheme; something Labour promised Business on first coming to power in 1997. The Scheme is particularly effective. Not only does it support many companies to establish sales in overseas markets, it also provides Accredited Trade Organisations opportunity to earn from delivering the Scheme to industry, thereby enabling us to engage actively with UKTI in promoting trade.
While our European competitors benefit from support far in excess of their British counterparts, we ask, why won't our government give us a level playing field?



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